Chinese Premier Li Keqiang said on Wednesday (13th) that he would “use monetary policy tools such as RRR cuts in a timely manner” to strengthen policies such as export tax rebates, indicating that the repeated new crown pneumonia epidemic has increased the downward pressure on the economy, prompting Beijing to increase the “steady growth” policy.
Li Keqiang chaired an executive meeting of the State Council (National Standing Committee) on Wednesday, and expressed the need to encourage large banks with higher provisioning levels to reduce their provisioning ratios (coverage ratio of allowances for bad debts) in an orderly manner.Monetary policy tools such as RRR cuts should be used in a timely mannerto further strengthen the financial system’s support for the real economy, especially industries, small, medium and micro enterprises, and individual industrial and commercial households that have been severely affected by the epidemic.Reasonable transfer of profits to the real economyreduce comprehensive financing costs.
Following last week’s National Standing Committee’s proposal to “use various monetary policy tools such as re-lending in a timely and flexible manner”, this week it will mention “the timely use of monetary policy tools such as RRR cuts”.
From the regular meeting of the National People’s Congress to the symposium of economic situation experts and entrepreneurs, many important meetings in recent days have released a clear signal that the macro policy should “make efforts ahead and strengthen in time”, and the market is also hotly discussing whether it is close to the timing of monetary policy operation.
The regular meeting of the State Council decided to further strengthen policy support such as export tax rebatesto promote the steady development of foreign trade.
Data released by the General Administration of Customs on Wednesday showed that the total value of imports and exports of goods traded in the last quarter wasRMB 9.42 trillion yuan, an increase of 10.7% from a year ago, showing that foreign trade has a stable start. However, some unexpected factors in the current domestic and foreign environment have exceeded expectations. China faces a more severe and complex external environment and encounters many challenges.
The National Assembly also said,To protect people’s livelihood and promote consumptionIt is necessary to implement the bailout policies for particularly difficult industries such as catering, retail, tourism, civil aviation, road, water, and railway transportation as soon as possible, encourage local governments to strengthen their support, and stabilize more consumer service market players.
The CICC report shows that the impact of the epidemic on consumption is greater than production. In the first three weeks of March, the scale of national migration dropped sharply by more than 50%, the turnover of the catering industry dropped sharply by 44%, the occupancy rate of hotels dropped by 14 percentage points, and the sales growth rate of houses and passenger cars also fell by regarding 30 percentage points.
